Bermuda Container Line's (BCL) net earnings for the nine months ended September 30, 2009 dropped 1.9 percent or $53,000 compared to the same period in 2008.

Earnings from shipping operations were down 25 percent as a result of reduced cargo volumes and increased costs, with the difference being made up by a one-off gain from an insurance claim settlement and an improvement in investment income over that period.

But the overall investment return was poor due to low interest rates.

For the total Bermuda market, eastbound container volume fell 11 percent versus the same period in 2008, while roll-on, roll-off and non-containerised volume was up during that time, despite the second half of the year's roll-on, roll-off cargo turning negative reflecting a fall-off in the construction industry in Bermuda, which is expected to continue through 2010.

At its quarterly meeting yesterday, the board of directors agreed to submit a proposal to the company's shareholders for a group reorganisation through a scheme of arrangement.

The reorganisation would see the New York to Bermuda freight service separated from the holding company function, starting on March 2010.

The directors have also approved a life extension project for the MV Oleander to extend her life in the BCL service for at least another 10 years to allow class surveyors to issue a certificate notation to the effect that the hull of the vessel is equivalent to a five-year-old ship.

Work is expected to be carried out on the Oleander in the latter half of this year and the ship will be out of service for up to three months in a shipyard in Europe, with a replacement ship chartered to maintain its weekly BCL service. The board has approved a budget of up to $7.25 million of the project.

l The directors of BCL have declared a dividend of 14 cents per share for the first quarter of 2010, payable to shareholders on February 17, 2010.